In the absence of any information regarding the acquisition of share in Profit of the retiring/deceased partner by the remaining Partner, it is assumed that they will acquire his/her share in:

Old Profit Sharing Ratio

The correct answer is option 1- Old Profit Sharing Ratio.

In the absence of any information regarding profit sharing ratio in which the remaining partners acquire the share of retiring/deceased partner, it is assumed that they will acquire it in the old profit sharing ratio and so share the future profits in their old ratio. For example, Asha, Deepti and Nisha are partners in a firm sharing profits and losses in the ratio of 3:2:1. If Deepti retires, the new profit sharing ratio between Asha and Nisha will be 3:1, unless they decide otherwise.